Streaming companies are experimenting with new subscription models to boost profitability, with varied success

From Nasdaq: 2024-10-05 07:00:00

Streaming companies like Netflix and Paramount Global are experimenting with new subscription models to boost profitability amidst rising prices and the need for multiple subscriptions. Netflix’s earnings growth is strong, with a 36% year-over-year increase in earnings per share expected. However, Netflix’s share price sometimes reacts negatively even after positive earnings releases.

Disney’s diverse entertainment business has led to profitability in its streaming segment, following cost-cutting measures and cracking down on password sharing. The company will increase prices on its streaming services to further boost revenue. In contrast, Warner Bros. Discovery faces declining share prices despite significant partnerships and subscriber growth.

Subscriber growth remains crucial for streaming platforms’ success, with profitability becoming more prevalent. Investors now consider traditional financial indicators like debt loads and ratios for assessing the sustainability of profits. Overall, the competition and profitability of streaming companies will continue to shape the market.



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